Last year was tough for technology stocks, with the tech-oriented NASDAQ index falling 33% by the end of 2022. The index has seen a sharp turnaround these last few months, however, and has posted a 16% gain year-to-date so far. And, with the overall index, there have been some consistent overperformers – which brings us round to the semiconductor chip stocks.
The global chip spending reached $570 billion last year and is projected to reach $1 trillion per year by the end of the decade, indicating a strong growth trajectory for the chip sector as we enter the second half of 2023.
In JPMorgan’s sector coverage, chip expert and 5-star analyst, Harlan Sur, provides insights: “Despite growing concerns on a slower economic backdrop, our positive view on semis/semicap/EDA fundamentals remains largely unchanged… demand fundamentals in CY23 continue to be constructive for strategic infrastructure (cloud/datacenter, telco, enterprise) and auto/industrial… Overall, we see the fundamental setup for 2023 progressing as we had anticipated, and we believe our covered companies are well-positioned to navigate through the current downcycle w/ a 2H inflection in fundamentals.”
So let’s dip into the TipRanks database, and check out the details on 3 semiconductor stocks that Sur sees set to fly higher in 2023.
GlobalFoundries, Inc. (GFS)
We will get started with GlobalFoundries, one of the major chip designers and makers in the US. GlobalFoundries provides contract services for customers across multiple industries, from automotive to computing to IoT to wired networking and everything in between. The company has a global reach, befitting its name, with design centers, R&D labs, and chip foundries located around the world.
A look at GlobalFoundries’s recent acquisition and partnership moves will show how the company is continuing to strengthen its position. In early February, GlobalFoundries acquired Renesas Electronics’s Conductive Bridging Random Access Memory (CBRAM) technology, a proprietary technology that offers low power memory solutions and is applicable in…
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